Pakistan power sector reform directives
Analysis based on 6 articles · First reported Jul 30, 2026 · Last updated Jul 31, 2026
The directives signal a government push to improve efficiency and reduce losses in Pakistan's power distribution sector, which could enhance the financial health of DISCOs and attract investment. The focus on smart meters and anti-theft measures may reduce circular debt and improve sector viability, positively impacting related entities and the broader economy.
Prime Minister Shehbaz Sharif chaired a review meeting on Power Division issues, directing a comprehensive technical audit of DISCOs' billing systems and emphasizing power sector reforms as a top priority. He ordered strict measures to eliminate electricity theft, deemed nationwide smart meter installation indispensable, and instructed the Power Division to devise clear performance indicators with defined timelines. He announced that the best-performing DISCO would be formally recognized and awarded to encourage competition. To address rural load-shedding, he directed village-level solarization projects. Officials reported declining technical and commercial losses, with IESCO, LESCO, and GEPCO recording the lowest losses, and IESCO, LESCO, GEPCO, FESCO, and MEPCO achieving 100% recoveries in FY2025-26. DISCO Support Units were established in several regions, and plans were discussed for an Asset Performance Management System and installation of 16.2 million AMI smart meters. Separately, the prime minister reviewed enhanced consular services for overseas Pakistanis, including digitization of attestation and complaints systems via QR codes.
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